Targa Resources Q3 adjusted EBITDA up 19%, beats estimates

Targa Resources

05/11/2025 11:09

Overview

Targa Q3 adjusted EBITDA beats analyst expectations, rising 19% year-over-year

Company Q3 revenue misses analyst expectations despite increase in net income

Targa repurchased $156 mln of common stock in Q3, continuing share buyback strategy

Outlook

Targa estimates full-year 2025 adjusted EBITDA at top end of $4.65 bln to $4.85 bln range

Company plans to recommend $5.00 annual dividend per share in 2026, a 25% increase

Targa moving forward with new gas plants and pipelines in Permian Basin

Result Drivers

PERMIAN VOLUMES - Record natural gas inlet volumes in the Permian Basin contributed to higher adjusted operating margins

NGL TRANSPORTATION - Record NGL pipeline transportation and fractionation volumes drove increased segment margins

NEW FACILITIES - Commencement of operations at new plants like Bull Moose II enhanced capacity and supported growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$4.15 bln
$4.56 bln (6 Analysts)
Q3 Net Income
$486.60 mln
Q3 Adjusted EBITDA
Beat
$1.27 bln
$1.20 bln (17 Analysts)
Q3 Adjusted Free Cash Flow
$1.08 bln
Q3 Operating Expenses
$333.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas transportation services peer group is "buy"

Wall Street's median 12-month price target for Targa Resources Corp is $200.00, about 22.7% above its November 4 closing price of $154.57

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nGNXbdyG4g

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)